Mediating effect of IT-enabled capabilities on competitive performance outcomes: An empirical investigation of ERP implementation

This paper presents an integrated research model related to ERP system implementation and empirically investigates its impact of this implementation on performance outcomes. We argue that effective ERP implementation requires better front-end planning to enable timely coordination (i.e., configurable), continuous interactions (i.e., adaptable), and organization-wide application (i.e., integrative). The hypothesized relationships are tested with data collected from 205 Korean manufacturing firms. Our empirical findings indicate that an ERP implementation strategy alone has no direct effect on performance but does have an indirect effect on performance through IT-enabled combinative capabilities, suggesting that IT-enabled combinative capabilities mediate performance outcomes.